The Best and Worst Places to Do Business Around the World

The World Bank's rankings can be a badge of honor or humiliation

Venezuelan President Nicolas Maduro waves to crowds in Caracas. The country, whose economy is in the midst of a severe and deadly recession, has consistently ranked as one of the worst places in the world to do business.
Photo:
Federico Parra, AFP/Getty Images

The rankings of the 190 economies can be a badge of honor or humiliation to countries around the world seeking to attract more investment. They are based on a slew of indicators gauging the business climate, including paying taxes, registering property, permitting and contract enforcement.

Although many nations in sub-Saharan Africa are still counted as the hardest places to start and run businesses, the region has seen some of the strongest improvements over the last several years.

“That gap has narrowed in a very significant way,” Mr. Lopez-Claros said.

Countries such as Lesotho, Kenya, Malawi, Niger and The Gambia recorded some of the biggest gains in their rankings as they inched toward creating better business environments.

“Governments are very interested in reforming in this area, either to attract [foreign direct investment] or because of the commodity prices,” said Rita Ramalho, lead author of the report.

Beyond sub-Saharan Africa, Kazakhstan, Vietnam and Indonesia have also made strong gains in the coveted Doing Business ranking as their economies have been rocked by headwinds from abroad.

“We have had 137 countries out of a total of 190 implementing 283 reforms and this is an all-time high,” Mr. Lopez-Claros said.

Over the past several years, the bank has been updating its metrics, including trying to better measure the quality of regulations.

This year, the report scores the extent to which countries are keeping women out of the economy. In dozens of countries—including many guided by Islam’s Sharia law—women face much higher hurdles to start businesses than men. Their voices might not be given the same weight in courts. They may not have the same property rights. Countries such as Iran, Pakistan, Saudi Arabia, Haiti and Egypt were docked for their economic discrimination against women.

To get a construction permit, it takes 652 days in Cambodia, 507 days in Cyprus and 426 days in Brazil. Italy is comparable to Zimbabwe in that statistic. It takes just 10 days less in Rome than it does in Harare: 238 days. It costs an average of $2,233 dollars to be compliant with export rules in the Democratic Republic of Congo and $1,160 in Tanzania. Greece is one of the worst places to get your contract enforced, taking more well over four years on average. By that metric, it ranks next to Suriname, Guinea-Bissau, India and Bangladesh.

And it is no coincidence that some of the worst performers overall also are those whose populations are suffering the worst economic conditions. Venezuela, for example, is in a deep recession with severe food shortages and three-digit hyperinflation. Babies there are dying at a higher rate than in war-torn Syria. The country is ranked 187 out of 190 in the World Bank report.

Well, having lived and worked in both South Korea and Japan, the ranking didn't surprise me much. In Korea you can literally start and operate a business within a day, visas are also easy to get. Japan on the other hand loves their bureaucracies and the amount of paperwork is unbelievable. Their tax system also doesn't believe in write-offs.